HHS Awards $140M for Software Publishers to Four LLC, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $140,401,213 ($140.4M)
Contractor: Four LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2013-12-31
End Date: 2016-12-30
Contract Duration: 1,095 days
Daily Burn Rate: $128.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $140.4 million to FOUR LLC for work described as: IGF::OT::IGF Key points: 1. The contract value of $140M is significant within the Software Publishers sector. 2. Four LLC secured this award under full and open competition. 3. The firm fixed price contract type suggests a focus on cost certainty. 4. The duration of 1095 days indicates a substantial, long-term need.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar software publisher contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating a broad search for qualified vendors. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the procurement is expected to yield a fair price, benefiting taxpayers by avoiding inflated costs.
Public Impact
Impacts healthcare providers and beneficiaries through software services. Supports the Centers for Medicare and Medicaid Services' operational needs. Ensures continued availability of essential software for health programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if software is highly specialized.
- Risk of cost overruns if scope changes significantly.
- Dependence on a single vendor for critical software.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost predictability.
- Long-term contract ensures service continuity.
Sector Analysis
The Software Publishers sector is critical for government operations, providing essential digital tools. This contract's value is substantial, reflecting the importance of the services provided to CMS.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting larger firms were likely the primary bidders. Further analysis would be needed to determine if small business subcontracting opportunities exist.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services, a large agency with established oversight mechanisms. The Centers for Medicare and Medicaid Services likely has internal controls to monitor performance and spending.
Related Government Programs
- Software Publishers
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of scope creep impacting cost.
- Dependence on a single vendor.
- Lack of specific software details for deeper analysis.
Tags
software-publishers, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $140.4 million to FOUR LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is FOUR LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $140.4 million.
What is the period of performance?
Start: 2013-12-31. End: 2016-12-30.
What specific software or services does Four LLC provide under this contract, and how do they align with CMS's mission?
The contract is categorized under 'Software Publishers' (NAICS 511210), indicating the provision of software products or related services. While the specific details are not provided, it likely supports CMS's core functions such as managing Medicare and Medicaid programs, processing claims, or data analysis. Understanding the exact nature of the software is crucial to assessing its direct contribution to CMS's mission effectiveness.
Given the firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen technical challenges?
Firm fixed price contracts aim to transfer risk to the contractor, but scope creep remains a concern. CMS likely has contract modification procedures and change control processes. Regular performance reviews and clear communication channels with Four LLC are essential to identify and address any potential scope changes or technical hurdles proactively, ensuring the project stays within budget and on track.
How does the $140M contract value compare to industry benchmarks for similar software solutions provided to large federal agencies?
Without specific details on the software, a direct benchmark is difficult. However, $140 million over three years for software publishing services to a major agency like CMS is a significant investment. Comparing it to contracts for enterprise resource planning (ERP) systems, data analytics platforms, or specialized healthcare IT solutions would provide context. The 'good' rating suggests it's within a reasonable range, but detailed comparisons are needed for a definitive assessment.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HHSM5002014RFQ0028
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 125, HERNDON, VA, 20170
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $140,401,213
Exercised Options: $140,401,213
Current Obligation: $140,401,213
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0312U
IDV Type: FSS
Timeline
Start Date: 2013-12-31
Current End Date: 2016-12-30
Potential End Date: 2016-12-30 00:00:00
Last Modified: 2023-04-05
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